MUMBAI: Tata Sons Ltd is planning to cease being a public limited company and revert its status to a private limited entity. Tata Sons Ltd also intends to change its name to Tata Sons Pvt Ltd.
According to reports, the company sought shareholders’ approval and the proposal will come up during its upcoming annual general meeting (AGM) next Thursday.
Such a move reduces the role of minority shareholders, contend its ousted chairman Cyrus Mistry and his family trusts, who together hold roughly 18 per cent stake in Tata Sons.
The proposal to change the corporate structure needs to be cleared as a special resolution during the AGM and will need not less than 75 per cent votes. It needs approval from National Company Law Tribunal.
Cyrus Investments and Sterling Investments own 18.4 per cent stake in Tata Sons, while Tata Trusts holds 66 per cent of the share capital. The remaining stake is with Tata family, group companies and individuals.